Offsetting loss on an empty property against profit on a rented property

R

ronanjohn

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I have an apartment which i was renting out in Dublin.

In May 2009 I moved out of my private residence in Kilkenny and was hoping to move back into my Dublin apartment but could not afford to do so until my previous home in Kilkenny was rented out.

In July 2009 Ii began to advertise the Kilkenny property for rent via DAFT ( I still have copies of invoices for payments to daft). However i was unable to rent out my Kilkenny property until May 2010 when I registered it with the PRTB.)

What I need to know is can I write off my loss on being unable to rent out the kilkenny property (interest payments on loan) against profit I was receiving on the rent of my Dublin property?

Simply put can i write off losses made in 2009 against profit received in 2009?

I also understand that I am late in filing my Tax return.

Any advice would be greatly appreciated.
 
You must google Revenue.ie - see Revenue guide to rental income (IT70). I had similar problem but due to the rules I saw that it was lost cause. Read them and see if you agree.

1. No expences allowed prior to first letting other than advertising fees and other legal and auctioneers costs concerned with letting.

2. In any case, interest payments of any amount are not allowed unless property registered with PRTB-which seems unfair if you had tried but couldnt get a tenant.
 
oldnick said:
1. No expences allowed prior to first letting other than advertising fees and other legal and auctioneers costs concerned with letting.
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This tends o be misinterpreted,to my mind they are talking about interest relief applied before the date of the first letting,fit out costs are allowable...I am wide open to correction on this one.
 
ronanjohn said:
What I need to know is can I write off my loss on being unable to rent out the kilkenny property (interest payments on loan) against profit I was receiving on the rent of my Dublin property?
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No you can not as it had not been rented prior to this. But if you now rent it and then later have a vacant period the mortgage interest costs are allowable.
 
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